ThreatMetrix, a provider of cloud-based fraud prevention solutions that do not require personally identifiable information (PII), today announced results of a joint study with The Ponemon Institute, "Mobile Payments & Online Shopping Survey of U.S. Consumers." The survey, which looked at U.S. consumers who self-reported that they are active users of the Internet, revealed that one-third of consumers intend to purchase more online than in-store this holiday shopping season.

Despite widespread online spending intentions for Cyber Monday and the upcoming holidays, three in four consumers have either some concerns (53 percent) or serious concerns (26 percent) about online fraud. Forty-three percent report they have indeed been the victim of online fraud, up slightly from 42 percent that was reported in a similar study in early 2011.

"While consumers continue to show a preference for the convenience of shopping and browsing online, their concerns about becoming a victim of online fraud is also growing," said Bert Rankin, vice president of marketing, ThreatMetrix. "With mobile thrown into the shopping mix, which is even more apparent this year, consumers and retailers alike need to be well equipped against fraudsters in every possible channel."

Surprisingly, nearly one in three consumers believe the fraud risk to be lower on a smartphone or tablet than on a desktop or laptop computer, added Rankin. When asking the "Elite" group – which for the purpose of the survey are consumers who could be considered extremely active users of the Internet – that number increased to 39 percent. According to Dr. Larry Ponemon, chairman and founder of The Ponemon Institute, those in the Elite category often have different perceptions of online shopping and online fraud than those who are less frequent users.

"Consumers who have a high propensity to use the Internet for shopping, banking, gaming, social media interactions, and other activities, appear to have a stronger sense of security online -- which is not exclusive only to desktops and laptops," said Ponemon. "While these users may be savvier when it comes to the digital channel, their safety net may not always be there. Online transactions are a two-way street. While they may think they're taking the necessary precautions to avoid online fraud, the sites they're visiting must also be implementing online fraud prevention tactics."

According to Julie Conroy McNelley, senior fraud and risk analyst at the Aite Group, malware is a big business that's growing rapidly, and actively targeting the financial value chain.

"Mobile, in particular, is difficult to protect from fraud," said McNelley. "With around 4,000 different device types to secure, it's often a daunting task. On top of that, few consumers are using anti-virus or anti-spyware software on their mobile devices. Mobile, just like more traditional e-commerce transactions from a desktop, has the potential to become a hotbed for fraud."

An overwhelming 84 percent of survey respondents said they thought it was important that a retailer express a commitment to protecting them from fraud.

Consumer Purchasing Behavior by Channel

In regards to their device of choice 49 percent indicated they will use their desktop or laptop computer on Cyber Monday and for other holiday-related purchases, 37 percent will use a smartphone, and 12 percent will use a tablet device. In fact, one in four respondents have already used their smartphone or tablet to make a mobile payment of some kind, with the majority using either PayPal or credit cards for the transaction.

In fact, the Elites indicated a preference toward smartphones (49 percent) and tablets (17 percent) on Cyber Monday and the upcoming holiday season, with only 34 percent saying they will be using their desktop or laptop. Furthermore, 40 percent of the Elites said their online purchases will likely exceed in-store purchases.

So what are consumers buying from their mobile devices these days? Most popular purchases using a mobile payments option on a smartphone or tablet are music downloads (77 percent), online service subscriptions or memberships (75 percent) and apps for smartphone or tablets (73 percent), according to survey results. Consumer electronics ranked slightly above clothing, at 48 percent and 43 percent, respectively.